Critical Raw Material Charter

Transcription

1 Critical Raw Material Charter Brussels, September 2018

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3 Introduction CRM Secretariat has developed a Charter on Critical Raw Materials Policy. This charter outlines core actions that the European Union should take on Critical Raw Materials and seeks to guide policy-makers on further action. The aim of the Charter is to promote Critical Raw Materials and provide recommendations to the EU and the wider stakeholder community on how Critical Raw Material policy should develop in the upcoming decades. Context The charter features a total of 10 principles that the CRM Alliance deems fundamental to ensure the continued supply of these materials, essential to Europe s economy and to drive future innovation. Each principle identifies challenges associated with CRMs and potential solutions to implement. Principle 1 - Sustainable Sourcing Principle 2 - Expediting Permitting Processes Principle 3 - Increasing Recycling Initiatives Principle 4 - Common Framework for Investment in CRM Production Principle 5 - Specific CRM Policy Initiative Principle 6 - Supply Chain Approach Principle 7 - Global Free and Fair Trade Principle 8 - Market based approach towards Substitution of CRMs Principle 9 - Awareness Raising Initiatives Principle 10 - R&D on New Technologies Conclusion The CRM Alliance deems all of the above principals of fundamental importance in order to develop a strong and robust CRM policy that will benefit the economic and national security interests of the EU and its leadership in future innovation. 2

4 Principles 01 Sustainable Sourcing High investment costs, difficulties in obtaining social acceptance and complex permitting procedures, Generation of waste and large tailings, Difficulties in identifying and addressing environmental impact Facilitating access to known or undiscovered mineral deposits in the EU; Predictable and stable mining investment climate i.e. using EU funds, EIB, etc, Other alternative solutions: automated mining, mining of small deposits, alternative mining, etc. An efficient the transformation of the Economy from a linear concept to a circular concept starts at the beginning of the economic cycle: Sourcing of critical raw materials. Improving the conditions and incentives for sustainable access of sourcing of CRMs will aid in guaranteeing supply of these materials in the EU Expediting permitting processes High costs of exploration projects due to complex and expensive permitting processes; Transparency regarding the permitting procedures as well as the level of permitting fees, royalties, etc. is not always sufficient, Lack of fast-track procedure for critical materials. Coordination and implementation from a bottom-up approach of minerals policies at different levels (EU, Member States, regional, local), Good governance - Strengthening the exchange of best practices in the area of mineral policies, Commission intervention to facilitate and expedite permitting procedures Fast track The European Union is heavily dependent on third country imports for many CRMs. In order to reduce this dependency, the EU take advantage of the geological deposits featured on its territory by enhancing primary production of these materials. To do so, Member States need to adopt a clear and coordinated permitting framework in order to expedite permitting and mining processes. 03 Increase recycling initiatives CRMs are difficult to recycle due to the long-lasting life of the final product they are generally embedded in and due to the extremely high costs associated to recycling procedures, Policy-makers do not recognize that for some CRMs and in certain applications recycling is not an option, technically and/or economically, EU funded CRM recycling studies/projects often focus on CRMs that cannot be recycled and/or replicate passed conclusions and results. Development of cost-effective, resource and energy efficient, and environmental solutions for recycling and recovery of CRMs from products and other waste and recycling streams when possible and economically viable for industry, Development of new innovative technological solutions for recovery of technology metals from complex end-of-life products, Improving the economic incentives to recycle CRMs when technically and economically feasible. In order to reduce the EU s dependency on third country imports, the European Union is implementing a more circular economy based on the principle reduce-re-use and recycle. Through the enhancement of recycling initiatives, CRMs are maintained in the EU s economy for as long as possible. Secondary production of CRMs, coupled with the enhancement of primary production, would reduce the EU s dependency on third states. 3

5 04 Common Framework for Investment in CRM Production High costs connected to general primary and secondary production of CRMs, Excessive EU and national legislative burden for Producers, Competition from third countries. Incentivize producers to implement new and sustainable production of CRMs, Incentivize secondary production of CRMs and reduce EU dependence on third States, Develop new production projects in the EU. A Common Framework for Investment in CRM Production should be developed at EU level in order to foster the general production of CRMs thus guaranteeing their supply and use in existing and future applications. 05 Specific CRM Policy Initiative The EU has developed a series of projects and initiatives mostly focusing on raw materials, These initiatives, except a few, do not address the specific issues concerning CRMs, EU policy does not focus on preserving existing CRM production Overregulation and incoherence of EU legislation concerning CRMs A specific CRM policy initiative would allow the development of tailored projects and initiatives that can address the specific issues linked to CRMs as well as guarantee a coherent approach towards CRMs, A specific CRM policy will allow to implement new technologies and instruments for sustainable mining and boost secondary production while remaining sensitive to the specific needs of the EU industry and the critical applications of CRMs, A specific CRM policy will enable the EU to react swiftly to unfair competition and dumping of CRMs by third countries. The development of a Specific CRM Policy initiative focusing exclusively on the issues associated to CRMs and their applications would enable the development of tailored-crm projects, the implementation of new technologies and boost primary and secondary production. Moreover, a specific CRM Policy would avoid overregulation and incoherence of EU legislation on CRMs. Minimizing the adverse regulatory burdens that impede advancement or the continued availability of CRMs. 06 Supply Chain Approach EU policies impacting CRMs do not consider the overall impact on global, regional and local supply chains, Lack of involvement of downstream users in developing the CRM list and policies impacting CRMs. Holistic approach to policy making, Involvement of the entire supply chain in policy making. An EU CRM policy which adopts a holistic approach and involves the entire supply chain in the exercise of policy making should be developed and implemented in order to better address the criticalities and issues concerning CRMs. 4

6 07 Global Free and Fair Trade Ensuring free and fair trade of CRMs, WTO dispute settlement system is slow and outdated Fair and unrestricted access to critical raw materials by improving supply partnerships for EU companies, Ensuring a level playing field of all actors present in the trade of critical raw materials commodities. The EU should support principles of both free and fair trade of CRMs guaranteeing a level playing field for all actors through the elimination of tariff and non-tariff barriers. Industrial Sector Policies should incorporate and highlight the economic and strategic importance of CRMs and their values to future innovation and competitiveness. 08 Market Based Approach towards Substitution of CRMs Substitution is not a viable option for CRMs due to their unique properties and economic significance, in particular, in high-tech applications requiring high standard performance and specification (often critical for safety), Lack of knowledge of the critical applications of CRMs and their properties, Substitution is complex progress, which can have unintended consequences for global value chains Raising awareness on the uses of CRMs and consequences attributable to regrettable substitution, Investing in new recycling technologies to improve the recycling rates for CRMs, Substitution should be industry driven and based on a market approach CRMs have unique properties and therefore should be promoted. The use of these substances translates into high performing products and a more competitive industry in Europe. Government policies should embrace and promote these substances and leave substitution to natural selection in a competitive market 09 Awareness Raising Initiatives Lack of knowledge of what CRMs, their importance for critical applications and where they are used; Lack of coordinated campaigns on the importance of CRMs and their mining at the national, local and regional level, Non-alignments of Member States national critical lists and the EU CRM List. Transparency on CRMs availability in the EU and on their positive and negative impacts in the economic/industry sector Industry led initiatives for increasing public awareness of the benefits and potential costs of the CRMs supply, Initiatives to obtain public acceptance and gain trust throughout the production cycle, in particular with reference to environmental and social aspects. Most people are unaware of the importance of CRMs and how they are used in their everyday life. This lack of knowledge negatively affects how the initiatives concerning CRMs are perceived. Awareness raising initiatives on CRMs and their applications would facilitate the dissemination of a better understanding of CRMs and their applications, hence a better knowledge of the associated initiatives. 5

7 10 R&D on New Technologies Research and development in the area of CRMs is fragmented and projects involving EU funds generally lack industry participation, Funding programs at the EU level are complex and costly, Overlapping and non-coordinated research projects, There are no projects which look at how the use of CRMs may lead to the development of improved or existing technologies to the benefit of EU citizens. Improvement of coordination and collaboration to streamline efforts to avoid duplication and resource loss, Develop a CRM Institute at EU level similar to the CMI in the U.S., Focus on funding on recovery technologies and on how CRMs can develop new applications: from civil to life saving technologies. Research and development in the area of CRMs should be coordinated in order to avoid duplication and resource loss. 6